Federal Funding Freeze: An Important Update

A federal judge issued a temporary injunction against the Trump administration’s January 27, 2025 federal funding freeze which provides municipalities and nonprofits relief through February 3 following legal challenges to the policy by nonprofits and state attorneys general.

The Office of Management and Budget (OMB) withdrew its initial memo on January 29 because of extensive confusion and opposition. While Social Security, Medicare, Medicaid, and SNAP received exemptions from the funding freeze, early childhood education and healthcare sectors have already experienced disruptions. Program reviews by agencies to adapt to new executive orders persistently generate uncertainty.

Organizations that depend on federal grants must examine their current contracts while strengthening their financial strategies and exploring different funding options. The combined efforts of stakeholder engagement, policy advocacy, community partnership development and contingency planning ensure uninterrupted delivery of essential services during uncertain times.